Bitcoin Trading Blog - Possible Bearish Engulfing Pattern Spotted!

It was another great week for Bitcoin, one of the best yet! While taking a closer look at the chart I spotted what may look like a potential bearish engulfing pattern!

Notice the total size of the red candle above including wick is a little larger!

A bearish engulfing is a candle pattern where the smaller green candle with smaller wick is eclipsed by a larger red candle with larger wicks!

It looks like this pattern is close enough to drop some anchors and analyze the market with a quick fibonacci retracement tool.
My goal is to familiarize myself with the higher probability buy price levels so that I will be ready if another correction hits! These areas consist of specific prices which we can build a profitable trading strategy around.

The specific price ranges I am looking at are between the two green lines on the chart above.

The high probability buy zone is to buy in the range between $4031-$3929! To manage risk you would try to buy at the lowest area in this range, and cut losses on this trade any lower than $3929! Wait for confirmation of a bounce from somewhere in this zone before buying!

If you like this blog please up vote and follow me @coininstant for more!

Hey Nicholas! A great analysis. I am still educating myself to read better the charts and put in place a strong trading plan, but I am far behind you experience and therefore your articles are always helpful.

Thank you to have shared useful information @coininstant, especially for us novices. Still a lot I don't understand associated with Bitcoin, maybe other comrades who are beginners is also the same with me.

As always, great in-depth analytics from your good self @coininstant. I can't buy any Bitcoin for a while, but I'll tune back in to see what your thoughts are at the time I can buy. Thanks for sharing, Upvoted. :-)